I would support this at the right levels:
“If you think it’s a portfolio shift and you provide the extra money you’ve done exactly the right thing, but if you think it’s a portfolio shift and it turns out it was actually a demand shift, then you’ve done exactly the wrong thing,” he said. “It’s highly dangerous. If they get it right then there should be no effects on the economy at all, except Australia would be earning extra income off the reserves. But if it turns out we’ve got it wrong we could actually damage the economy.” The intervention could be done without a major impact on inflation and the printed money would not need to be “sterilised,” or offset by selling Australian bonds, he said.
